A significant downturn has swept through the cryptocurrency market, culminating in a notable crash for Bitcoin and numerous altcoins. The broader market correction has resulted in a staggering $1.7 billion in liquidations, with Bitcoin’s price slipping below the $113,000 mark, prompting analysts to forecast a potential deeper correction ahead.
Bitcoin has seen a decline of 2.62%, currently trading at approximately $112,799, leading to an estimated loss of over $80 billion in its market capitalization. The trading volume surged nearly 70%, hitting $43 billion, indicating mounting selling pressure. Experts suggest that the bearish sentiment may not be fully priced in yet, as Bitcoin is poised for further challenges. Analysts, including Ted Pillows, anticipate long liquidations of more than $2 billion around the $106,000 to $108,000 range, making such a downturn seem imminent.
In addition to Bitcoin, key altcoins have also experienced significant declines. Ethereum is leading in liquidations, with approximately $483 million liquidated, while Bitcoin saw about $276 million in liquidations during the same period. Ethereum’s price has dipped below $4,200, down about 15% from its all-time high, as a wave of selling by whales exacerbates the situation.
Furthermore, other major cryptocurrencies have also faced considerable losses. XRP dropped to around $2.82, BNB fell to $1,027, and Solana is trading at roughly $220. Meanwhile, Dogecoin suffered a severe blow, plummeting nearly 11% to trade below the $0.24 threshold.
Analyst Captain Faibik has raised concerns about Bitcoin’s trajectory, noting technical indicators such as a broken rising wedge and the formation of a bearish flag pattern on the daily chart. He warns of the possibility of another bearish leg that could drive Bitcoin prices closer to the $100,000 mark. Despite these warnings, predictions in the market still suggest a potential rally towards $125,000 in the future.
As market participants digest this sharp correction, the atmosphere remains charged with uncertainty. With the possibility of an extended downturn looming, many traders and investors are reevaluating their positions. The current situation underscores the volatile nature of the cryptocurrency market and highlights the critical need for caution amid shifting market trends.
